Since terminal leave is applied for by an officer or employee who has already severed his connection with his employer ans who is
no longer working, then it follows that TERMINAL LEAVE PAY, which is the cash value of his accumulated leave credits, should
not be treated as compensation for services rendered at that time. It cannot be viewed as salary for purposes which would reduce
it. There can be no "commutation of salary" when a government retiree applies for terminal leave because he is not receiving it as
salary. what applies for is a commutation of leave credits. It is an accumulation of credits intended for old age or separation from
the service. Hence, Section 286 of the Revised Administrative Code is not applicable. It cannot be construed as limiting the basis
of the computation of terminal pay to monthly salary only.
Tuesday, October 17, 2017
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